GenCos Want FG To Stop Subsidizing Power

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The Vice Chairman of Mainstream Energy Solution, Ismaila Funtua has revealed that the power generation companies in the country are seeking for the Federal Government to increase electricity tariff. According to him, this is due to the high cost of doing business and level of debt incurred by the GenCos.

Kola Adesina, managing director of Egbin Power Plc, also called for an increase in electricity tariff, saying “the current structures on ground are not business friendly since electricity is not political but business inclined”.

Ismaila Funtua spoke with journalists on Tuesday, on the sidelines of the quarterly presidential business meeting held in Abuja. He said that the Federal Government will eventually have to stop intervening and subsidising power for the people.

“Let those who can pay for it do so.

“Whether government likes it or not, they have to review the tariff of power in this country.”

He also added that;

“All those playing politics with it that they do not want to increase, people do not want to hear of this. This is my cell phone; you pay for it even before you make use of it. And nobody is controlling the tariff, they charge what they want and all of us have at least one cell phone, therefore government needs to do the needful.

“If the government wants power, then they cannot continue to subsidise for people, you were there when the minister of power was saying that people who have the ability to pay will pay but those government needs to subsidise will be subsidised for.”

The Cable reports that Funtua disclosed that operatives of the generating companies have requested a meeting with the Acting President Yemi Osinbajo alongside key government officials to sort out constraints in their business. He also said about the calls for a review of the sector privatisation, that the people making these calls do not know a lot about that state of the sector and how they got where they are now.

“So many people are talking about the review of the privatisation of power without knowing where we started from, where are we today, are we owed money or are we not owed money, these monies, some of it belongs to the banks, some of it belongs to us,” he asked.

With this development, the question is, “If power is left unsubsidized in Nigeria, how many more Nigerians will be left without electricity?”

The sector seems to have been boxed into a lose-lose situation. We can only hope that the Federal Government is able to make a decision that doesn’t put the nation in darkness.

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